| Title: | IRS FUEL TAX REGULATIONS |
|---|---|
| Date: | 2004-08-12 |
| To: | abi |
| Links: | previous, next |
TO: ALL ABI FILERS
FROM: OFFICE OF TRADE COMPLIANCE AND FACILITATION
ON JULY 29, 2004, THE IMTERNAL REVENUE SERVICE (IRS) PIBLISHED TEMPORARY
REGULATIONS IN THE FEDERAL REGISTER (69FR45587) DESIGNED TO ENSURE THE
COLLECTION OF THE APPROPRIATE AMOUNT OF EXCISE TAX ON IMPORTED GASOLINE,
DIESEL FUEL AND KEROSENE (HTSUSA CHAPTER 27). THE REGULATIONS ARE
EFFECTIVE ON SEPTEMBER 28, 2004. THE IRS HAS FOUND THAT ABUSIVE
SITUATIONS EXIST WITH REGARD TO THE ENTRY OF TAXABLE FUEL INTO THE
UNITED STATES. FOR EXAMPLE, SOME ENTERERS ARE NOT REGISTERED AND ARE
NOT PAYING THE EXCISE TAX ON THE IMPORTED FUEL. THIS NOT ONLY GIVES
NONCOMPLIANT ENTERERS A COMPETITIVE ADVANTAGE OVER THEIR COMPLIANT
COMPETITORS, BUT IT ALSO DEPRIVES THE UNITED STATES TREASURY OF REVENUE
INTENDED FOR THE HIGHWAY TRUST FUND.
EXCISE TAX ON FUEL IS PAID DIRECTLY TO THE IRS AND IS NOT COLLECTED BY
CUSTOMS AND BORDER PROTECTION. UNDER EXISTING CBP REGULATIONS, THE IRS
WILL BE ABLE TO COLLECT ANY TAX THAT IS NOT PAID BY EITHER THE IMPORTER
OR THE UNREGISTERED DEALER BY CHARGING THE IMPORTER'S CUSTOMS BOND.
IMPORTERS CAN AVOID LIABILITY FOR THE TAX AND THE POSSIBILITY OF
COLLECTION FROM THEIR CUSTOMS BOND BY DOING BUSINESS ONLY WITH FUEL
DEALERS THAT ARE REGISTERED WITH THE IRS. THE TEMPORARY REGULATIONS
PROVIDE A CERTIFICATION PROCEDURE THAT IMPORTERS CAN USE TO VERIFY A
FUEL DEALER'S REGISTRATION. QUESTIONS REGARDING THE REGULATIONS MAY
BE REFERRED TO CELIA GABRYSH, IRS OFFICE OF ASSOCIATE CHIEF COUNSEL,
PASSTHROUGHS AND SPECIAL INDUSTRIES, (202) 622-3130.